SUBJECT : LOGISTICS MANAGEMENT

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SUBJECT :LOGISTICS MANAGEMENT

Total Marks: 80

Q1.What is Physical Distribution Management (PDM)? Why is PDM considered to be a critical area of overall supply chain management? Discuss he system or ‘total’ approach to PDM in detail

Answer:Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers. The physical distribution considers many sales distribution channels, such as wholesale and retail, and includes critical decision areas like customer service, inventory, materials, packaging, order processing, and transportation and logistics. You often will hear these processes be referred to as distribution, which is used to describe the marketing and movement of products.

Accounting for nearly half of the entire marketing

Q2. “Many innovations on technology-based approaches are well-suited to the enhancement of The effectiveness of Supply Chain Management”-Justify the statement by giving few applications of information technology in SCM

Answer:Innovation is in. Just ask Bill Ford, star of the Ford Motor Company commercials touting the company's "new mission—innovation."

Innovation is also at the core of IBM, which invests billions of dollars in research and development every year and has been the leading patent-generating company in the United States for more than a decade. "Innovation that matters, for our company and the world," is an IBM core value.

Q3. Define SCM integration and discuss the four stages of Steven’s model of supply chain integration. Also, describe the strategies involved in SCM integration

Answer:Supply chain integration is a close alignment and coordination within a supply chain, often with the use of shared management information systems. A supply chain is made up of all parties involved in fulfilling a purchase, including raw materials, manufacturing the product, transporting completed items and supporting services.

Q4. Why is the location of warehouse important for the SCM? Discuss some methods for determining the location of the warehouse

Answer:Warehousing and warehouse management are part of a logistics management system, which is itself a component in supply chain management. Although viewed by some as simply a place to store finished goods, inbound functions that prepare items for storage and outbound functions that consolidate, pack and ship orders provide important economic and service benefits to both the business and its customers.

Central Location: A warehouse provides a central location for receiving, storing and distributing products. As each inbound shipment arrives,

Q5. What is Customer Profitability Analysis? Why has it gained importance in the recent times? Is it ethical to deny a customer who is not profitable?

Answer:Customer profitability (CP) is the difference between the revenues earned from and the costs associated with the customer relationship in a specified period.

"a profitable customer is a person, household or a company that overtime, yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling and servicing the customer"

Although CP is nothing more than the result of

Q6. What are the essential differences in the Supply Chain Management of Products vs. Services?  Discuss the application of Supply Chain Management principles in Financial Services .

Answer:It all depends on the company policy andethics. Some companies give top most priority for service goods and few on products movement.

The end goal of any company is a satisfied customer. The process of locating, obtaining and transporting the inputs needed to do this is the core function of supply chain management. Supply chain design in the manufacturing industry requires a great deal of focus on physical product and a broader supplier base, while service firms typically have little need for physical inputs other than office supplies, and often work with a much smaller group

Q7. Explain the two major functions of transportation functionality namely product movement and product storage?

Answer:Product Movement: Whether handled by the marketer or contracted to others, these functions are crucial to having a cost-effective and efficient distribution system.

Principles of Marketing Tutorials we explore the movement of product by first examining how physical distribution decisions often involve analyzing the trade-off between the service level the marketer offers to customers versus the costs associated with providing these services.

Next we provide an in-depth examination of three major tasks that the marketer or distribution service providers may need to carryout in order to ship

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